This weekend Auction clearance rates for residential properties in both Sydney and Melbourne was way below expectations. Potential purchasers are clearly staying away, waiting for possible a rate cut resulting in the availability of cheaper home loans, or perhaps their confidence has simply been shattered by a recent spate of economic disasters both locally and overseas.
According to the latest data from Australian Property Monitors, 54.3 per cent of properties cleared in Sydney over the weekend.
The most expensive property to achieve a sale was a $3.5 million, four bedroom house in Saratoga, the most affordable property sold in the capital city was a two bedroom townhouse in Macquarie fields.
In Melbourne, only 48.1 per cent of properties cleared at auction – a sizable drop from 69.4 per cent last weekend.
The Real Estate Institute of Victoria chief executive Enzo Raimondo said both home buyers and property professionals are now hoping the Reserve Bank cuts the cash rate at its November Board meeting. Home owners and renters alike have been squeezed from all directions over the past 12 months and are seeking some relief.
“It has been twelve months since the Reserve Bank last increased interest rates. This Tuesday, buyers, sellers and those holding home loans will be hoping to see a cut to rates and if it occurs it will help encourage more buyers into the market, particularly into the new year.